Baosteel Co., Ltd. proposed the target of cost reduction in the next three years: the cost will be reduced by 10 billion yuan from 2018 to 2020, and the challenge will be 13 billion yuan. This is the news from Baosteel Co., Ltd. held at the Promotion Meeting of Cost Changes in the New Three Years held by reporters. This is the second time that Baosteel Co., Ltd. has made further efforts in cost reform after adding the first three-year plan of cost reduction in 2016, with the addition of Dongshan Base, Qingshan Base and WISCO based on laser welding and hosting units.
According to statistics, in the first round of cost reduction plan of Baosteel, it is estimated that the cost reduction of three years in 2015 will be 18.6 billion yuan and 107% of the planned target will be completed. The concept of "cost transformation" has its roots in people's minds; the performance evaluation mechanism of "strong correlation" has been initially established; the "agile mechanism" of cost reduction has been rapidly formed; the "high cost constitution" has been gradually improved; the "horizontal" cost competitiveness has continued to be consolidated and effectively boosted Baosteel's business performance continued to improve. In 2018, Baosteel Co., Ltd. is the closing year for the first round of cost reduction plan and the starting year for cost reduction plan in the new three years. In the new three-year period, Baosteel's cost of environmental protection, materials and spare parts, logistics costs and labor costs will all continue to grow. Cost improvement will increasingly become a powerful promoter of the Company's business performance and competitiveness.
It is reported that Baosteel in the new cost reduction plan for the next three years, the next three years will be set to 2017 challenges: 2.3 billion yuan, 4.7 billion yuan, 6.1 billion yuan, and for the first time will be four steel manufacturing bases in accordance with the " Mode overall planning and management, at the same time to reflect the fine management, manufacturing costs, marketing expenses, financial expenses, respectively, set goals. Baosteel Co., Ltd. will continue to push forward its cost reduction efforts in the five dimensions of "drive for cost reduction," "reduce cost through cooperation," "reduce costs through technology," and "economic operation," so as to promote information systems, performance design, monitoring mechanisms and training. Related work in an orderly manner to achieve a new round of cost competitiveness.
Baosteel pointed out that the goal of cost reform in the new three years is not only to satisfy investors but also to change Baosteel's "high-cost physique" and to win the survival and development. Especially in the company's operating performance is better, but also to form a firm thinking of cost change. Cost change is one of the five core competitiveness of Baosteel Co., Ltd. In the process of advancing the cost reform in the new three years, through three years of practice and efforts, the information support capability in the course of cost reform will become the future multi-manufacturing base of Baosteel Co., Ltd. Important ability to be accurate, efficient, benchmarking. To make the cost change become the Baosteel's cadres and employees a total of their own pursuit, philosophy and culture, to find more best practice cases, recognition and advocacy. Baosteel cost of change forever in the road.
